Florida consumer debtors must beware of too much debt
On behalf of Bankruptcy Law Firm of Casas on Wednesday, April 30, 2014.
The credit card industry in the United States is big business. It is reported that in 2012, the last year for which figures were available, that consumer debtors swiped their credit cards 26 billion times, resulting in transactions valued at approximately $2.5 trillion. Debtors in Florida may be among the many U.S. consumers who carry between three and four credit cards.
The National Foundation for Credit Counseling reports that 39 percent of credit card users have debts exceeding $8,000 owed on their credit card. As debt increases and becomes overwhelming, it can also become more difficult to keep track of exactly what types of debt a person owes. This may make it hard for a person to accurately record facts like how much is owed to each creditor, which may make it correspondingly easier to rack up more debt by not having an accurate picture of total debt.
One of the first steps consumers may choose to take when they want to get out of debt is to establish exactly how much outstanding debt they have. By listing all the outstanding credit debt, as well as the interest rates, a consumer may be more motivated to act proactively. However, motivation to act alone is not enough. One also has to know where to start. Consumers in Florida wanting to get out of debt may wish to consider the many avenues available under state law to assist them in getting back on their feet.
When debt becomes overwhelming, some consumer debtors may want to consider the protection of bankruptcy. Chapter 7 bankruptcy discharges unsecured debts and offers protection against creditor harassment, while Chapter 13 bankruptcy offers a reorganized payment plan for those who have a steady monthly income. Opting for one of these possible solutions may provide consumers with a chance to make a fresh start.
Source: CBS Boston, "Too Much Debt Will Sink You", Debbie Lee, April 17, 2014